Coinciding with the news that United States President Joe Biden’s proposed tax plan would require tax reporting on business transactions in excess of $ 10,000, the value of the Privacy Coin Monero (XMR) climbed 31% on Friday.
Biden’s American Family Tax Plan would require exchanges and patrons to implement strict reporting measures to help detect tax evasion and money laundering. Banks and financial institutions will also be required to report account flow / outflow information to the Internal Revenue Service to help uncover non-reported income.
The Treasury Department’s agenda, which was published on Thursday, said cryptocurrency business activity remained relatively small, but is expected to grow over the next decade.
“Despite today having a relatively small share of business income, cryptocurrency transactions are likely to increase in importance over the next decade, especially in the presence of a broad-based financial account reporting system,” the report noted.
More than 24 hours later, Monroe led the chart with a 31% increase in the cryptocurrency market capitalization top 100. Token prices rose overnight from $ 230 to $ 304, now 84% rebounded, after Monroe fell to a three-month low of $ 165 during Wednesday’s market crash.
Complementary technologies that can anonymize transactions of many well-known cryptocurrencies now exist, but Monero is one of the few coins that focuses solely on privacy and is the largest of its kind by market cap.
Launched in 2014, Monero has become the currency of choice in the drug markets of the Dark Web, replacing more well-known coins such as Bitcoin (BTC) in recent years. Blockchain analysis has become a threat to anyone using bitcoin on the dark web, from drug dealers to anonymous journalists. Monro transactions cannot be detected in the same way. The technology has attracted the attention of government agencies worldwide, many of which have offered a reward to anyone who can make opaque cryptocurrency transparent.
Google Trends data shows that Monero search interest has increased nearly 1,000% over the past year, as the March 2020 valuation of $ 34 increased the coin price by 1,300%. Despite an increase in interest, historical search queries are a quarter compared to December 2017, when Monero’s presence in the market cap top 10 gave it a more visible position in the cryptocurrency shop window.